dedicated to being world class Kinross Investor Presentation Kinross Investor Presentation May 11, 2004 May 11, 2004
Forward Looking Statement Forward Looking Statement Certain statements set forth in this presentation constitute "forward looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995. Such statements involve risks, uncertainties and other factors that may cause the actual results, performance or achievements to differ from those expressed or implied by such forward looking statements. Such risks and uncertainties are described in periodic filings made by Kinross Gold Corporation with the U.S. Securities and Exchange Commission and Canadian provincial securities regulatory authorities. All dollar amounts used throughout this presentation are expressed in US dollars, unless otherwise noted.
Meeting Agenda Meeting Agenda Corporate Bob Buchan President & Chief Executive Officer Operations Scott Caldwell Executive Vice President and Chief Operating Officer Fort Knox John Wild Vice President and General Manager, Fort Knox Round Mountain Mike Iannacchione Vice President and General Manager, Round Mountain Refugio Fred Mason Vice President and General Manager, Refugio Kettle River Bob Taylor Vice President and General Manager, Kettle River Exploration Ron Stewart Vice President, Exploration Environmental Jerry Danni Vice President, Environmental, Health & Safety
DEDICATED TO BEING WORLD CLASS DEDICATED TO BEING WORLD CLASS Bob Buchan Bob Buchan President & President & Chief Executive Officer Chief Executive Officer
Bench Strength - Corporate Bench Strength - Corporate Bob Buchan President & Chief Executive Officer Brian Penny John Ivany Scott Caldwell Chris Hill Ron Stewart VP, Finance/Chief Financial Officer Executive VP Executive VP, Chief Operating Officer VP, Investor Relations VP, Exploration
Bench Strength - Operations Bench Strength - Operations Kinross Gold Corporation Operations Management Organization Scott Caldwell Executive Vice President & Chief Operating Officer Rick Baker Mike Doyle Alan Edwards Andy Kaczmarek Al Schoening Jerry Danni Rod Cooper VP, Operations VP, Operations VP, Operations VP, Project Develpment VP, HR & Public Affairs VP, Environment, H&S VP, Technical Services Kettle River Round Ft. Knox Refugio Mountain (Project Phase) Porcupine Refugio Kubaka Pamour JV (Operations) Musselwhite La Coipa Paracatu Paracatu JV JV JV Blanket Crixas Buckhorn Mtn. JV Development Lupin Gurupi
Going Forward Going Forward • Out of Greece • Approved Refugio restart, construction underway • Moving ahead with Pamour project in Timmins • Fort Knox pit layback approved and underway • Paracatu SAG Mill • Buckhorn transaction • Hedge Book now expected to be eliminated in Q2/04
Kinross Today Kinross Today Kinross is now a major gold producer, focused Kinross is now a major gold producer, focused in the Americas in the Americas Concerns addressed: � � Financial leverage – strong balance sheet � � Cash costs – comparable to other North American seniors � � Reserve life – increasing year over year � � Execution risk – None � Deliver on the deliverables
Corporate Mission…Strategy Corporate Mission…Strategy “DEDICATED TO BEING WORLD CLASS ” Work the current portfolio to its potential � Continue expanding the reserve base � Go back to the drill bit � Find and retain quality employees � Meet or exceed Corporate Governance � standards
Looking Ahead - 2004 Goals Looking Ahead - 2004 Goals 1. Replace and increase reserves 1. Replace and increase reserves • Paracatu expansion; Buckhorn • Increase average mine life from 7 to 8 years in 2004 2. Use excess capital to advantage 2. Use excess capital to advantage • Kinross has cash on hand, strong cash flows and is virtually debt free 3. Deliver on the deliverables 3. Deliver on the deliverables • Kinross will meet its production and operating cost forecast 4. 4. Achieve and maintain 2 million ounce production Achieve and maintain 2 million ounce production profile profile • Existing mines and a robust pipeline will make this ultimate goal a reality
DEDICATED TO BEING WORLD CLASS DEDICATED TO BEING WORLD CLASS Scott Caldwell Scott Caldwell Executive Vice President & Executive Vice President & Chief Operating Officer Chief Operating Officer
Bench Strength Bench Strength Kinross Gold Corporation Operations Management Organization Scott Caldwell Executive Vice President & Chief Operating Officer Rick Baker Mike Doyle Alan Edwards Andy Kaczmarek Al Schoening Jerry Danni Rod Cooper VP, Operations VP, Operations VP, Operations VP, Project Develpment VP, HR & Public Affairs VP, Environment, H&S VP, Technical Services Kettle River Round Ft. Knox Refugio Mountain (Project Phase) Porcupine Refugio Kubaka Pamour JV (Operations) Musselwhite La Coipa Paracatu Paracatu JV JV JV Blanket Crixas Buckhorn Mtn. JV Development Lupin Gurupi
Strategy Strategy Paracatu expansion, Gurupi, Growth from within Refugio Optimize cash starved assets - Attention to assets Round Mountain, Kettle River Strengthen management team by attracting and retaining Bench Strength quality employees Corporate transactions where Proven transactional synergies can be realized capabilities
DEDICATED TO BEING WORLD CLASS DEDICATED TO BEING WORLD CLASS John Wild John Wild Vice President & General Manager, Vice President & General Manager, Fort Knox Fort Knox
Fort Knox Fort Knox
Operating Statistics Operating Statistics 2003 2004E Q1 2004 Gold production (ounces) 303,999 340,000 75,980 Total cash costs ($/ounce) 244 220 291 Tonnes mined(000) 39,214 48,392 7,884 Tonnes milled (000) 13,685 13,524 3,216 Average grade (grams/tonne) 1.07 0.929 0.905 Capital costs ($ millions) 26.6 43.4 7.2
Mining Progress Mining Progress << PHASE 4 Waste to Pearl Creek Causeway 2004 Actual Target MAR 800 kt 375 kt APR 300 kt 375 kt MAY 0 kt 350 kt Total 1,100 kt 1,100 kt PHASE 5 >> Mining Tons 2004 Actual Target JAN 396 kt 500 kt FEB 933 kt 350 kt MAR 1,100 kt 522 kt Total 2,429 kt 1,372 kt << PHASE 6 >> Mining Tons 2004 Forecast Budget APR 300 kt 0 kt MAY 700 kt 0 kt JUN 700 kt 938 kt JUN 1,700 kt 938 kt
Opportunities Opportunities – DRILL AND BLAST • actual drill time % • Drill pattern and blast design • Ongoing product testing • Mill throughput optimization – GRADE CONTROL • Pattern preparation and cleanup • Shovel operator feedback reports • Increased technical support
Opportunities Opportunities • EQUIPMENT EFFICIENCY • Flexibility (broken muck inventory, equipment avail%) • Bottlenecks (crusher flow, waste dump alternatives) • Crew exchange and scheduled downtime • Supervisor training and pre-/post-project review • Lost opportunity tracking (minutes, tons, ozs, $)
Improved Mining Results Improved Mining Results Total Tonnes Moved, 17% increase 48.3 43.7 41.8 2003 2004 25.4 11.0 6.0 3.4 1.7 $1.32 2003 Fort Knox True North Rehandle Total $1.15 2004 $1.04 $0.89 $0.85 $0.82 Decrease mining unit costs 8% Fort Knox True North Total
Improved Equipment Availability Improved Equipment Availability 10,000 9,128 2001 2002 2003 2004 7,598 7,700 7,000 6,743 6,600 6,163 6,000 5,792 4,873 0 0 0 0 0 CAT 777 CAT 785 MT3700 CAT 789 Tire Hour Life, 10% increase Drill Productivity, 14% increase 120 2003 115 2004 80% 66% Drill Time, % Pen. Rate, fph
Better Availability via Maintenance Better Availability via Maintenance – Technical training – Team building with NC Machinery – ALPM April, 2004 – Improved efficiency in-pit fuel and servicing – Planning and Supervision – Planned vs. actual maintenance – JD Edwards interface
Exploration Exploration 2004 OBJECTIVES – Add 100,000 oz to the Gil (Placer Target) – Test remaining Ft. Knox in-pit and pit expansion targets. Potential to add 50-100,000 oz – Ft Knox mine plan optimized, potential to add 200,000 oz. to reserves. - Test additional exploration targets between Ft Knox and Gil, peripheral to True North and elsewhere in the district.
Fort Knox Fort Knox
DEDICATED TO BEING WORLD CLASS DEDICATED TO BEING WORLD CLASS Mike Iannacchione Mike Iannacchione Vice President & General Manager, Vice President & General Manager, Round Mountain Round Mountain
Mine Overview Mine Overview Town Reusable Pad Pit Tailings Dam Dedicated Pad
Mine Overview Mine Overview
Mine Overview Mine Overview
Mine Overview Mine Overview
Mine Overview Mine Overview
Operating Statistics Operating Statistics 2003 2004E Q1 2004 Gold production (ounces) 399,854 367,500 94,985 Total cash costs ($/ounce) 201 223 191 Tonnes mined (000) 44,566 39,000 8,684 Tonnes milled (000) 2,459 3,300 802 Tonnes placed – Reusable pad (000) 6,453 7,200 2,175 Tonnes placed – Dedicated pad (000) 48,486 47,100 14,457 Average grade (grams/tonne) 0.59 0.51 0.53 Capital costs ($ millions) 4.9 8.1 1.3
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